State yet to recover embezzled money

CARSON CITY -- Nevada Attorney General Frankie Sue Del Papa says her office will continue its legal action to recover $131,000 embezzled by Mary Ferris, also known as Jane Treher, from the state's health insurance plan.

Ferris, a former employee of the now-defunct L&H Administrators, which ran the state's plan, was sentenced Friday to 49 months -- about four years -- in prison by U.S. District Judge Johnnie Rawlinson.

Part of the sentencing includes forfeiture to the U.S. attorney's office of $477,000 recovered from the Las Vegas woman's bank account.

Ferris, 37, was accused of stealing about $608,000 from the state Committee on Benefits, which oversees the health insurance system for 25,000 state workers and their dependents.

Ferris, who pleaded guilty in February to 10 counts of health care fraud and one count of embezzlement, was accused of using her position as claims manager in Las Vegas for L&H Administrators to prepare 155 false claims. She then created 10 fictitious medical providers and opened an account at Nevada State Bank.

The fraudulent checks were later deposited in her bank account.

L&H was hired by the state to manage insurance claims by paying bills submitted to the state from doctors, hospitals and medical providers.

The firm was fired in 1997 when it fell far behind in paying its bills. At that time it was discovered there was more than $600,000 in missing funds.

L&H's mismanagement coupled with the embezzlement sent the financial health of the insurance plan into a downward spiral. It is now estimated to be $8.8 million in the red this year.

This is not Ferris' first encounter with embezzlement. She also pleaded guilty in April to five counts of mail fraud while working for a Southern California health insurance company.

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